00:01
Hello, here we have five parts that started with the first one.
00:05
And we always assume that this company uses a perpetual inventory system.
00:12
So let's look, let's find the answer of the cost of merchandise sold for the sale of may 20th using the lifo, last in, first output, inventory cost method.
00:31
So in this day only six units were sold.
00:39
So using the last in first out, we use the amounts which are, we use the cost of the last purchase and the cost is $24 per one unit.
01:02
So we multiply six units by this cost, 24.
01:07
And our answer is 144.
01:12
If we look to the answer options, our answer is b.
01:17
So please choose this answer.
01:21
Okay, the next question, what is the cost of exactly the same sale but using the fifo? so in this case, we should first sell units which are purchased earlier and there are two of them remaining so two of them are multiplied by twenty dollars of course and four others will use the second purchase cost which is 24 so here we have a smaller number by eight dollars so one hundred and thirty -six dollars this will be the answer for the second part and our answer is c.
02:23
Please choose this option.
02:27
Okay, the next question.
02:28
Question number three.
02:31
Let's determine the ending inventory for the may using fifo inventory cost method.
02:39
So as we can see, during this month, 25 units were bought and only 12 units were sold.
02:51
So we need to find the cost of this 13 units.
02:58
So 10 of them will be from the last purchase, 30, and three of them will be from the previous which is 25 and our answer will be $372.
03:22
If we look to the answer options, our answer is b.
03:25
Please choose this answer.
03:31
Part 4...